If you are still looking to sell your home, you may still be in luck. With the low inventory, you can still expect a large pool of buyers that were not able to purchase their home in the past months. You may have some leeway but time is running out.
Over the summer, home inventory was at an all-time low. Homes were sold at a frenzied speed -- the Days on Market in Fountain Valley dropped from 31 days down (2016) to 14 days (2017); while Huntington Beach experience the same trend dropping from 45 days (2016) to just 13 (2017). The price reflected this high demand, jumping detached home median sales price from $735,888 to $790,000 in Fountain Valley, and detached home median sales price to $880,000 from$818,250 in South Huntington Beach.
Basic law of supply and demand tells us that price rises accordingly to the availability of supply and the strength of demand. Since the housing inventory (Supply) was low, the price rises as shown in the graph above. So how do I assert that there is still demand out there? Since there are only data of closed transactions but no actual data for potential buyers, we have to infer that information by looking at historical data.
The supply of homes dropped from 172 in August 2015 down to 133 to August 2016. That is s 22.6% drop, based on a 3-month rolling data in their respective years. The DOM dropped by 11%, from 37 DOM in August 2015 to 33 in August 2016. But in August 2017, the DOM dropped to 14 days (58% drop!) in Fountain Valley and down to 13 days (71% drop!!) in South Huntington Beach. The demand of Fountain Valley and Huntington Beach has continued to grow in the past months (which in itself is a separate discussion or blog posting). At worst, demand remains the same since the supply had dropped. But, being in the “ground floor” and having a much closer pulse in the marketplace, I can tell you that the demand of Fountain Valley and Huntington Beach has unequivocally increased. Thus, I believe the both the limited supply and increased demand will continue.
Usually, the sales of October, November, December, January, and February of the respective years show a dip in prices due to lack of demand. But, in October 2016 to February 2017, the median sales price remains strong. You can see that prices remain strong even last winter due to the low inventory. Median home sales price remain steady until December in both Fountain Valley and South HB. I surmise the trend will continue for this winter.
*Source: All data from California Regional Multiple Listing Services Inc InfoSpark © 2017
Thus, in conclusion, I believe the coming months of a conventional “slow time” in home transactions will remain strong or even stronger. Bear in mind that buyers still consider value over costs: make the necessary repairs, invest in quality, and hire the right people. Make the appropriate preparations for the home to increase its value and curb appeal and you will not regret it.
If you need consultation or assistance in preparing your home for listing, please give us a call. We have years of experience renovating, preparing, staging, and selling homes at any condition and budget. We have also have well-qualified buyers who are ready to deal privately as necessary.
612-888-4698 / 612-888-4MWU
matt@MWUproperties.com